Octopus Energy Raises $1 Billion, Set to Spin Off AI Unit Kraken Technologies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
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Source: CNBC
- Successful Funding: Octopus Energy raised $1 billion in its first standalone funding round, achieving a valuation of $8.65 billion, which lays a solid foundation for the spin-off of its AI tech unit, Kraken Technologies, expected by mid-2026, thereby enhancing its market competitiveness.
- Customer Growth: Kraken Technologies is rapidly approaching its target of 100 million customer accounts, bolstered by signing a major unnamed customer, which not only elevates its market position but also provides strong support for future revenue growth.
- Strategic Investment: Origin Energy will invest $140 million in this funding round, further solidifying its 22.7% stake in Kraken, demonstrating confidence in the long-term growth potential of the company while providing necessary capital structure support for Octopus Energy.
- Software Market Expansion: Kraken's annual recurring revenue has more than doubled in the past 18 months, indicating its strengthening position as the modern operating system for utilities, which will create favorable conditions for its future public listing and attract more software-focused investors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
